Israel to Cut Fuel Prices by 50 Agorot for One Month

The cost of gasoline in Israel is set to decrease by 50 agorot per liter starting next week, following a recent record high. This price reduction is planned to last for one month, concluding shortly after the upcoming elections. The decision was announced by the government after fuel prices reached a new peak on October 1, when a liter cost 8.27 shekels, an increase of 52 agorot. This price already included a prior 50 agorot excise tax reduction implemented a month earlier, meaning the price would have been 8.77 shekels without it. The new discount will be in addition to the existing one, bringing the total excise tax reduction to 1 shekel per liter. However, the full 1 shekel reduction will not be immediately apparent, as 50 agorot are already factored into the current price.

Government Legal Advisor Gali Baharav-Miara confirmed on October 1 that there are no legal obstacles to the measure. The proposed order will now be open for public comment before Finance Minister Bezalel Smotrich signs it. The Ministry of Finance's own experts initially opposed the additional excise tax cut, citing significant budget costs and a lack of clear funding sources. They warned Smotrich about potential consequences for state finances. After the one-month discount expires, the price of gasoline will be influenced by global oil and fuel prices, which are currently unpredictable.